Mortgage applications were up 2.1% and 4.2% in the previous two weeks, respectively.
According to Mike Fratantoni, MBA’s senior vice president and chief economist, the 6.9% drop in filing dropped to its lowest level in nearly 18 months. Applications for regular loans also fell to their lowest level since May 2020.
“Last week, mortgage rates were volatile as investors tried to gauge the Fed’s upcoming action amid several different signals, including rising inflation, mixed labor market data, high consumer spending, and limited housing supply that led to rapid home return housing. – price increases, ”said Fratantoni.
“As the economy develops and inflation remains high we expect that tariffs will continue to grow gradually in the second half of the year, ”added Sam Hather, chief economist at Freddie Mac. “For those homeowners who haven’t refinanced yet – and there are many borrowers who could benefit from it – now is the time.”
The share of refinancing fell to 61.9% of the total number of mortgage applications from 62.5% in the previous week. Unadjusted, the composite market index was down 7% from the previous week. The seasonally adjusted buying index was also down 5% from a week earlier.
IN FHA the share of the total number of applications for mortgage did not change and amounted to 9.5% compared to a week earlier, and the share VA the share of the total number of applications for mortgages also decreased to 10.5% from 11.2%.
Here’s a more detailed breakdown of this week’s mortgage applications data:
- The average contractual interest rate for 30-year fixed rate mortgages and associated loan balances ($ 548,250 or less) rose to 3.20% from 3.18%.
- Average contractual interest rate for a 30-year fixed rate mortgage with a large loan balance (over USD 548,250) dropped to 3.23% from 3.26%
- The average interest rate on a 30-year fixed-rate mortgage agreement dropped from 3.21% to 3.19%.
- The average interest rate on a 15-year fixed-rate mortgage agreement also fell from 2.58% to 2.56%.
- The average contractual interest rate for 5/1 ARM increased to 2.98% after being flat over the past two weeks at 2.69%, down from 0.26 pips (including processing fees) for loans with LTV 80%.